Ann: Sconi Project in Due Diligence Phase for NAIF funding, page-219

It’s in the 2018-19 NAIF Corporate Plan (page 23):

“Most of the projects that NAIF expects to close in 2018-19 have been in development phase for over 12 months.
NAIF indicates to project proponents, as early as possible, its willingness to support a viable project, so that financial close can be achieved as quickly as possible. For example, it may issue an indicative term sheet and/or seek conditional approval, which provides a degree of certainty and support to the proponent as its project is developed.

Before a project can be considered for an Investment Decision by the NAIF Board, the proponent must deliver a formal application for NAIF financial assistance, which it does by delivering an Investment Proposal. This is a comprehensive information package which will include a developed business case and financing assumptions. The development of that information is largely in the control of the proponent as the project progresses through due diligence. To reach that point, there will have been significant planning and development by the proponent taking the project concept from idea to an investment ready proposal.”

Then check the approval timeline for GENEX (most recent conditional NAIF approval):

Announcement re DD stage (12 Jul 17):

https://naif-gov-au.industry.slicedtech.com.au/wp-content/uploads/2017/07/NAIF-Genex-release-12-July-2017.pdf

Announcement re indicative term sheet (20 Jun 18):

https://naif-gov-au.industry.slicedtech.com.au/wp-content/uploads/2018/06/Genex-NAIF-Announcement-20-June-2018.pdf

Thus, it took just under 12 months to for GENEX to get an indicative term sheet. And it is now 15 months since announcement on DD Stage acceptance, and still no final confirmation of support.

It is also noted that NAIF currently has 16 projects in the DD stage. It has a corporate plan KPI of finalising 5-10 projects per annum. In other words, it will take 2 years to clear the current DD pipeline – or longer if it does not meet its KPI.

Those familiar with the NAIF guidelines will also realise that their Investment Mandate requires a spread of investments across geographical areas and project types. Qld already has a majority of approved projects and GENEX is only 4 hrs drive from Greenvale. Doesn’t help the cause.